Finding Text
2021-002 - Activities Allowed or Unallowed (Material Weakness) Condition:
During our testwork of the internal controls and compliance over the Activities Allowed and Unallowed process, we noted controls that were designed to ensure that JAG program related expenses were actually incurred were ineffective in certain circumstances.
Criteria:
The terms and conditions for participation in the JAG program specifies that the procurement activities of the DSAL should be meet the BSCC’s minimum requirements for a contract under the JAG Award and vendor doesn’t meet the minimum requirement under that the total amount of the contract exceeds the threshold of $5,000 per the BSCC administrative guide for an informal procurement and the contract predates the JAG Award and therefore does not fall within the performance period.
Cause:
The above finding was caused by the control and policy not being designed with sufficient precision and not following the BSCC’s administrative guide to ensure a detail level of review was conducted to identify whether the contracts did meet the BSCC’s minimum requirements for a contract and contract was made in the performance period under the JAG Award.
Effect:
The schedule of expenditure of federal awards is inappropriately stated as of June 30, 2021, because ineligible costs were charged to the program.
Management Response:
Management agrees with the findings and has provided the accompanying corrective action plan.
Estimated Completion Date:
November 20, 2022
Responsible party:
Patrick Eiser - DSAL Operations Director